Saudi Aramco Looks to China, India to Prop Up Markets

Saudi Arabia’s state-owned oil giant Aramco is bullish on oil markets for the rest of 2023, as demand from major importers China and India is expected to be strong despite an expected global downturn.
“We believe that oil market fundamentals remain generally sound for the rest of the year,” CEO Amin Nasser said, CNBC reported.
His optimism comes even as the world’s largest oil importer China is showing signs of stalling growth, prompting several cuts in the country’s key lending rates.
“Despite the recession risks in several OECD countries, the economies of developing countries, especially China and India, are driving oil demand growth of more than 2 million barrels per day this year,” said Nasser.
Once the broader global economy starts to recover, the industry’s supply demand balances will likely tighten, he projected.
“Although China is facing some economic headwinds, the transport and petrochemical sectors are still showing signs of demand growth,” the CEO added.
It echoes the International Energy Agency’s prediction that global oil demand is on track to rise by 2.4 million barrels per day in 2023.